Call rate steady, dollar gains
Monday, 7 April 2008
FE Report
The inter-bank call money rate remained steady Sunday on injection of large amount of fresh cash into the market. The US dollar, however, posted slight gain against Bangladesh taka (BDT) in the inter-bank foreign exchange market, fund managers said.
The call rate in extreme range moved between 8.00 per cent and 20.00 per cent repeating previous day's range.
In most deals, the rate, however, fluctuated between 15.00 per cent and 20.00 per cent against previous day's range of between 8.00 per cent and 15.00 per cent reflecting high demand for cash.
The withdrawal of cash through treasury bills exerted pressure on liquidity neutralising the easing impact of fresh cash inflow, fund managers said.
Banks and financial institutions had to borrow cash at high rates from the inter-bank market to meet urgent requirements of their clients, they said.
The central bank injected Tk 22.36 billion, including Tk 22.14 billion devolved to primary dealers as liquidity support, conducting repurchase agreement (repo) auctions at an annual interest rate of 8.50 per cent.
The government, however, withdrew Tk 9.00 billion on the day holding auctions of treasury bills.
The US dollar, on the other hand, marked slight gain against Bangladesh taka (BDT) in the inter-bank foreign exchange market although the international market remained closed due to weekend, fund managers said.
The exchange rate of the dollar against taka ranged between Tk 68.58 and Tk 68.59 against day's rate of Tk 68.58.
The dollar was, however, steady in public deals and it was transacted at rates varying between Tk 67.2263 and Tk 69.60 against maintaining previous day's range.
In the informal market, the dollar also remained mostly steady and it was traded at rates varying between Tk 68.80 and Tk 69.30 against previous day's range of between Tk 68.80 and Tk 69.20. The informal market experienced higher demand for the dollar on the day, money dealers said.
The exchange rate of the Indian rupee against the taka fluctuated between Tk 1.56 and Tk 1.77.
In the regional market, the exchange rate of the dollar against the Indian rupee moved between Rs 39.84 and Rs 39.87 and the Pakistani rupee between Rs 62.81 and Rs 62.86. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.1930 ringgit and 3.1960 ringgit and that against the Thai currency between 31.58 baht and 31.75 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied Friday between 101.60 yen and 101.3 yen, while the euro moved between 1.5739 dollar and 1.5741 dollar against the greenback.
As on April 06, 2008, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 2.73880 per cent for one month, 2.72750 per cent for three months, 2.72000 per cent for six months and 2.66380 per cent for twelve months.
The inter-bank call money rate remained steady Sunday on injection of large amount of fresh cash into the market. The US dollar, however, posted slight gain against Bangladesh taka (BDT) in the inter-bank foreign exchange market, fund managers said.
The call rate in extreme range moved between 8.00 per cent and 20.00 per cent repeating previous day's range.
In most deals, the rate, however, fluctuated between 15.00 per cent and 20.00 per cent against previous day's range of between 8.00 per cent and 15.00 per cent reflecting high demand for cash.
The withdrawal of cash through treasury bills exerted pressure on liquidity neutralising the easing impact of fresh cash inflow, fund managers said.
Banks and financial institutions had to borrow cash at high rates from the inter-bank market to meet urgent requirements of their clients, they said.
The central bank injected Tk 22.36 billion, including Tk 22.14 billion devolved to primary dealers as liquidity support, conducting repurchase agreement (repo) auctions at an annual interest rate of 8.50 per cent.
The government, however, withdrew Tk 9.00 billion on the day holding auctions of treasury bills.
The US dollar, on the other hand, marked slight gain against Bangladesh taka (BDT) in the inter-bank foreign exchange market although the international market remained closed due to weekend, fund managers said.
The exchange rate of the dollar against taka ranged between Tk 68.58 and Tk 68.59 against day's rate of Tk 68.58.
The dollar was, however, steady in public deals and it was transacted at rates varying between Tk 67.2263 and Tk 69.60 against maintaining previous day's range.
In the informal market, the dollar also remained mostly steady and it was traded at rates varying between Tk 68.80 and Tk 69.30 against previous day's range of between Tk 68.80 and Tk 69.20. The informal market experienced higher demand for the dollar on the day, money dealers said.
The exchange rate of the Indian rupee against the taka fluctuated between Tk 1.56 and Tk 1.77.
In the regional market, the exchange rate of the dollar against the Indian rupee moved between Rs 39.84 and Rs 39.87 and the Pakistani rupee between Rs 62.81 and Rs 62.86. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.1930 ringgit and 3.1960 ringgit and that against the Thai currency between 31.58 baht and 31.75 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied Friday between 101.60 yen and 101.3 yen, while the euro moved between 1.5739 dollar and 1.5741 dollar against the greenback.
As on April 06, 2008, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 2.73880 per cent for one month, 2.72750 per cent for three months, 2.72000 per cent for six months and 2.66380 per cent for twelve months.